Bringing Money from Abroad

FORMRLROSE

I am an Indian origin UK Citizen work and live here.

1. I send more than 200K to India for investment etc over 15 years. Can I bring back the money I send over years without attracting any tax? This is the money already taxed once here

What kind of proof I will need to say that the money I am bringing is the money I send over years?

2. I received inheritance £150K in India. Can I bring the money to UK without attracting any tax? what proof I need to say that the money is inheritance.

3. I made some profit on land I purchased with money send from UK. 200K. What tax I have to pay on this amount if I bring it to UK?

THANKS

Randvegeta

FORMRLROSE wrote: »

I am an Indian origin UK Citizen work and live here.

1. I send more than 200K to India for investment etc over 15 years. Can I bring back the money I send over years without attracting any tax? This is the money already taxed once here

What kind of proof I will need to say that the money I am bringing is the money I send over years?

2. I received inheritance £150K in India. Can I bring the money to UK without attracting any tax? what proof I need to say that the money is inheritance.

3. I made some profit on land I purchased with money send from UK. 200K. What tax I have to pay on this amount if I bring it to UK?

THANKS

Technically speaking, as a UK resident you would be liable to UK tax even if you didn't bring it in.

Regarding your investments, you would be liable to UK tax if you are earning dividends. Even if you don't bring the money into the UK it is still taxable technically.

If you don't earn dividends, then only your gains would be taxable. You also have a gains allowance of some £10,xxx per year.

The inheritance tax may be tax free given it is under the IHT allowance depending on the total value of the estate... Even if tax were due, you may get double taxation relief if tax was already paid in India.

On the property side, have you already sold and made the profit? Was the sale 200k or profit 200k?

Regardless of weather or not you bring it into the UK it is taxable.

I am assuming you are UK domiciled? If you are not domiciled, then you have other options.

antrobus

Randvegeta wrote: »

Technically speaking, as a UK resident you would be liable to UK tax even if you didn't bring it in.

Regarding your investments, you would be liable to UK tax if you are earning dividends. Even if you don't bring the money into the UK it is still taxable technically.

If you don't earn dividends, then only your gains would be taxable. You also have a gains allowance of some £10,xxx per year.

On the property side, have you already sold and made the profit? Was the sale 200k or profit 200k?

Regardless of weather or not you bring it into the UK it is taxable.

I am assuming you are UK domiciled? If you are not domiciled, then you have other options.

That bit's about right. I'd suggest the OP read through something like

http://www.hmrc.gov.uk/cnr/hmrc6.pdf

and work out exactly what tax status they enjoy.

Randvegeta wrote: »

The inheritance tax may be tax free given it is under the IHT allowance depending on the total value of the estate... Even if tax were due, you may get double taxation relief if tax was already paid in India.

UK inheritance tax is payable by the estate, not by the beneficiary. OP wouldn't be taxed on the receipt of an inheritance from a UK estate let alone an Indian one.

However I'd advise OP to keep hold of whatever documentation they've received from the Indian adminstrators of the estate just in case HMRC start asking questions and think it's really the proceeds of another investment deal they haven't been told about. Or indeed just in case SOCA start asking questions and think it's really part of a money laundering scheme.

Randvegeta

antrobus wrote: »

That bit's about right. I'd suggest the OP read through something like

http://www.hmrc.gov.uk/cnr/hmrc6.pdf

and work out exactly what tax status they enjoy.



UK inheritance tax is payable by the estate, not by the beneficiary. OP wouldn't be taxed on the receipt of an inheritance from a UK estate let alone an Indian one.

However I'd advise OP to keep hold of whatever documentation they've received from the Indian adminstrators of the estate just in case HMRC start asking questions and think it's really the proceeds of another investment deal they haven't been told about. Or indeed just in case SOCA start asking questions and think it's really part of a money laundering scheme.

Yes that is true. I suppose we can safely assume the inheritance comes from the estate of a non UK domiciled person. But in any case, yes it should be the estate that pays the tax not the recipient.

lordbase

This is a complicated area and I would recommend speaking to a tax specialist (not just an accountant).

In relation to the UK tax situation and working on the basis that you are resident in the UK but domiciled in India (ie your father was Indian and you haven't severed your ties with India).

As a UK resident non-domicile the default position for income is that you will be taxed on your worldwide income and gains unless you claim the remittance basis (which may result in a £30,000 charge, depending on if you have been here for 7 of the last 9 years).

The remittance basis allows you to not declare non-UK income and gains, unless it is brought into the UK.

It is difficult to advise on the situation without knowing your full circumstances, but if you have significant non-uk income or gains in a particular year it may be worthwhile considering the remittance basis.

So dealing with your issues in turn:

1. Any income or gains will be taxed on an arising basis unless the remittance basis is claimed for that particular year. It may be worthwhile looking at capital investments and claiming the remittance basis on the year you make substantial gains. Again this is subject to the values involved.

2. As previously stated, the inheritance is free of UK tax, however, be aware that if the inheritance was in the form of property or any other appreciating asset, there may be UK capital gains tax to pay on a sale.

3. This depends on when you made the sale. There may be a hidden capital gains tax charge when you remit the income into the UK if you haven't already paid UK tax on the gain. If you sold the land in the current year or previous 2 years, there will be capital gains tax liability on any gain made, unless you claimed the remittance basis.

As previously mentioned, this is a complex area and detailed advice should be taken as there are a number of questions at stake.

Plus if it all goes wrong you can sue an advisor, you can't sue a forum!

Finally - just want to add the disclaimer: The above cannot be taken as binding advice but is just general pointers on the subject.

Anthony Rogers

Chris_Tax

lordbase wrote: »

This is a complicated area and I would recommend speaking to a tax specialist (not just an accountant).

In relation to the UK tax situation and working on the basis that you are resident in the UK but domiciled in India (ie your father was Indian and you haven't severed your ties with India).

As a UK resident non-domicile the default position for income is that you will be taxed on your worldwide income and gains unless you claim the remittance basis (which may result in a £30,000 charge, depending on if you have been here for 7 of the last 9 years).

The remittance basis allows you to not declare non-UK income and gains, unless it is brought into the UK.

It is difficult to advise on the situation without knowing your full circumstances, but if you have significant non-uk income or gains in a particular year it may be worthwhile considering the remittance basis.

So dealing with your issues in turn:

1. Any income or gains will be taxed on an arising basis unless the remittance basis is claimed for that particular year. It may be worthwhile looking at capital investments and claiming the remittance basis on the year you make substantial gains. Again this is subject to the values involved.

2. As previously stated, the inheritance is free of UK tax, however, be aware that if the inheritance was in the form of property or any other appreciating asset, there may be UK capital gains tax to pay on a sale.

3. This depends on when you made the sale. There may be a hidden capital gains tax charge when you remit the income into the UK if you haven't already paid UK tax on the gain. If you sold the land in the current year or previous 2 years, there will be capital gains tax liability on any gain made, unless you claimed the remittance basis.

As previously mentioned, this is a complex area and detailed advice should be taken as there are a number of questions at stake.

Plus if it all goes wrong you can sue an advisor, you can't sue a forum!

Finally - just want to add the disclaimer: The above cannot be taken as binding advice but is just general pointers on the subject.

Anthony Rogers

Spot on! Take advice, preferably from a CTA (Chartered Tax Advisor - look for the owl logo) registered advisor to give yourself the reassurance.

From what you say, you may receive some unwanted news in respect of liabilities you have not declared, however, it's far better to disclose them yourself than be found out by HMRC.

Just one addition to the above post, it is proposed that if you have been UK Res 9/12 preceeding tax years, the remittance basis charge is upped to £50k.

I'm sure I've read there are other changes afoot too.

In any case, that only adds to the argument. Get advice!!!